Apple agrees to dish out $100 million in iTunes credits to settle lawsuit

By on February 27, 2013, 8:30 AM

Apple has agreed to shell out more than $100 million in iTunes store credits in order to settle a class action lawsuit that alleged children were able to make app purchases on the iPhone and iPad without parental consent. The suit was filed two years ago by a group of five parents who were angry their kids were able to make in-game app purchases without their knowledge.

The suit alleged that Apple failed to adequately disclose the fact that third-part game apps, which are largely available free of charge and rated as appropriate for children, contained the ability to make in-app purchases.

To settle the dispute, Apple has agreed to give an iTunes store credit of $5 to more than 23 million people affected by the company’s negligence. Those with claims of purchases of $30 or more can elect to receive a cash refund instead of store credit. A hearing for the proposed settlement is scheduled to take place Friday. We are told that the final settlement figure could vary slightly.

Cupertino has since added additional steps that make it more difficult for children to “accidentally” make in-app purchases without consent. As of March 2011, customers are now required to enter their Apple account password whenever an in-app purchase is made. The added security measure came as part of iOS 4.3 which also introduced personal hotspots, a faster JavaScript engine, iTunes home sharing and new AirPlay features.




User Comments: 6

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Burty117 Burty117, TechSpot Chancellor, said:

I thought you had to know the password to the apple account associated to the phone in order to make in-app purchases?

tehbanz tehbanz said:

I thought you had to know the password to the apple account associated to the phone in order to make in-app purchases?

you didn't used to, they changed that after people started complaining.

Burty117 Burty117, TechSpot Chancellor, said:

Oooowwww! cool, I didn't know, I don't think I have ever used in-app purchases xD

Then yeah, Apple deserve this

supertech supertech said:

Apple made a killing on this. Of course they knew this would happen as it's the cost of business. Even with these payouts, Apple is still laughing to the bank with all of these "accidental" purchases.

vultureG vultureG said:

Apple made a killing on this. Of course they knew this would happen as it's the cost of business. Even with these payouts, Apple is still laughing to the bank with all of these "accidental" purchases.

yeah, what a rip off by Apple! people still have to use itunes.

tehbanz tehbanz said:

Apple made a killing on this. Of course they knew this would happen as it's the cost of business. Even with these payouts, Apple is still laughing to the bank with all of these "accidental" purchases.

And of course I guarantee most consumers have cut their losses and won't have the patience to file for a FIVE dollar itunes credit.

Grrrr

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